Reviewing the Insider Trends for Precision Drilling Corporation (PDS)

Recent insider trends for Precision Drilling Corporation (NYSE:PDS) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. PDS’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 55.35% of Precision Drilling Corporation (PDS)’s shares. The total value of these holdings, in millions, is $493. Among active positions in the latest quarter, 53 holders increased their positions by a total of 32.21 million shares, 71 holders decreased the positions by a total of 68.13 million shares, and 31 holders held their positions. This works out to a net decrease in ownership of 35.92 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 16 holders initiated new positions by a total of 4.36 million shares and 28 holders exited their positions by a total of 14.08 million shares. This nets out to a decrease of 9.72 million shares and is another bearish sign for PDS.

Insider ownership increased by a total of 0 shares, which suggests that PDS’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.

Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Precision Drilling Corporation (NYSE:PDS)’s short interest is 10.86 million shares, or 3.72% of the float. This represents an increase of 7% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for PDS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PDS is a sell, which implies that PDS is expected to underperform the market based on prior trading patterns.

Conclusion

Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Precision Drilling Corporation (NYSE:PDS) is overvalued.

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